Alter NRG Plasma Gasification: The Next Generation of Waste-To-Energy Solutions

Transcription

1 Alter NRG Plasma Gasification: The Next Generation of Waste-To-Energy Solutions Deep Dive Workshop on Waste-to-Energy 2016 Asia Clean Energy Forum, 7 June 2016

2 ABOUT US: ALTER NRG Our Focus and What We Do Alter NRG is the marketing entity for Westinghouse Plasma Corporation 30+ years of research and development; ~$2 billion invested in technology We divert waste that is otherwise landfilled (including Municipal Solid Waste, Hazardous Waste, Industrial Waste, Medical Waste, Mixed Biomass, Construction & Demolition Waste, etc.) We make syngas from multiple waste streams Provide large and small scale solutions 25 tpd to 2000 tpd Our Owner: Sunshine Kaidi Sunshine Kaidi wholly owns Alter NRG and Westinghouse Plasma Sunshine Kaidi was founded in 1992 and headquartered in Wuhan, China Builds, owns and operates a portfolio of waste to energy facilities; holds assets in excess of $6 billion USD Generating in excess of 1400 MW to date, and has received permits to build an additional MW over the next 5 to 7 year in China alone 2

3 WE HAVE A GLOBAL WASTE PROBLEM Most of the world s MSW is landfilled (approximate, million tpy): MSW generation (billion tpy): Waste generation levels are expected to grow by 69% by World Bank Study,

4 GLOBAL WASTE HAS SIGNIFICANT ENERGY EQUIVALENTS ESTIMATED MUNICIPAL SOLID WASTE ESTIMATED WASTE BIOMASS MSW WASTE ~3.6 Million Tonnes/day SYNGAS 37 Million Btu/day (OR) LIQUID FUELS 3 Million Bbls/day (OR) ELECTRICAL 178 GW Capacity WASTE BIOMASS ~14 Million Tonnes/day SYNGAS 120 Million Btu/day (OR) LIQUID FUELS 12 Million Bbls/day (OR) ELECTRICAL 685 GW Capacity ESTIMATED HAZARDOUS WASTE ESTIMATED WASTE TIRES HAZARDOUS WASTE ~1.2 Million Tonnes/day SYNGAS 17 Million Btu/day (OR) LIQUID FUELS 874,000 Bbls/day (OR) ELECTRICAL 43 GW Capacity WASTE TIRES ~ Tonnes/day SYNGAS 520,000 Btu/day (OR) LIQUID FUELS 24,000 Bbls/day (OR) ELECTRICAL 1.4 GW Capacity 4

5 Challenges: S.E. ASIA PERSPECTIVE Highly populated region of ~620 Million people (excluding China); with highly populated urban cities Lack of adequate waste management and recycling Waste material consists of high moisture content / wet organics Country risk, including political, social, changing renewable policies, difficult to obtain a long-term energy price Scarcity of development capital and scarcity of credible project developer/owners Opportunities: Waste volumes are growing and majority of waste is largely landfilled Acute energy demand for power generation and economic growth Limited availability of land for landfilling vs. human habitation International pressure for cleaner waste practices and GHG reduction 5

6 SE ASIA/CHINA VERSUS NA/EUROPE Waste: High moisture content, high organic content in SE Asia waste means low calorific value and lower energy output. NA/EU waste is often RDF low organic, low glass/metals and high calorific value. Long Term Contracts: Mostly open markets allow for negotiation of long term waste and energy contracts in NA/EU. Obtaining secure, low risk contracts is much more difficult in China/SE Asia. Revenues: Revenues are lower in China/SE Asia due to very low tipping fees for waste. Capital Cost: Low labor and material costs in China/SE Asia mean lower capital costs to build a facility. Political Risk: Stable governments and policy in NA/EU long term predictable business environment. Less so in many SE Asia countries. Permitting: Permitting often easier in SE Asia/China due to fewer NGOs and simpler permit/license processes. 6

7 DEVELOPMENT CHALLENGES WORLDWIDE Less than factual media coverage, speculation and misunderstandings about plasma gasification NGO pressure anything short of 100% recycling is bad! Changing or uncertain renewable energy policies Unfavourable mandates or lack of incentives Energy from waste not addressed or not considered renewable Incentives come and go with political change Risk aversion to newer technologies 7

8 ALTER NRG / WESTINGHOUSE PLASMA GASIFICATION TECHNOLOGY

9 PLASMA GASIFICATION MILESTONES COMMERCIALLY PROVEN 1983 PLASMA FIRED CUPOLA APPLICATION General Motors; Defiance, Ohio - commissioned in 1987 Demo 50 tpd 2002 WORLD S 1 ST COMMERCIAL SCALE PLASMA GASIFIER Mihama Mikata, Japan - operational in BIOMASS FACILITY Kaidi, China operational Q INCINERATOR ASH VITRIFICATION Kinuura, Japan - commissioned in SECOND GENERATION ETHANOL FACILITY Coskata Lighthouse, U.S. -commissioned in Sept /2017 ENERGY FROM WASTE FACILITIES, Tees Valley, UK 2,000tpd MSW to combined cycle power Under construction, commissioning dates: TV and TV PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW) Hitachi Metals; Yoshi, Japan - commissioned in WORLD S LARGEST PLASMA HAZARDOUS WASTE FACILITY Pune, India operational in MARC-3 TORCHES Guanchuan, China delivery Q1, INDUSTRY LEADING TECHNOLOGY Plasma technology by others such as Alcan over 500,000 hours of industrial use 2003 WORLD S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE Utashinai, Japan - operational in 2003; 200 tpd 2014 DEMONSTRATION FACILITY INTEGRATED WITH EXISTING INCINERATOR Shanghai, China operational in Q1, 2014; 30 tpd 9

10 ALTER NRG PLASMA GASIFICATION PROCESS A WASTE REDUCTION TECHNOLOGY Waste Feedstocks: Municipal, Hazardous, Industrial, Medical, Mixed Biomass, Construction & Demolition, Coal, Tires, etc Tons/day Fine & Heavy Particulate Matter Removed Coarse Particulate Matter Removed Sulphur Removed Slag Liquid Fuels Power 50 MW Gross (~41 MW Net to the grid) For sale to market Fuel Replacement 20 Tons/day Sludge to landfill 20 Tons/day Recycled into the Gasifier 1 Ton/day For sale to market 250 Tons/day For sale to market as aggregate Barrels/day For sale to market 10,420 Btu/day (3.8 MMBtu/year IN SUMMARY: 1000 tpd Waste Processed Using Alter NRG Gasifier 250 tpd Slag for Sale To the Market as Aggregate 40 tpd Waste for Disposal 20 tpd Particulate Matter + 20 tpd Sludge for Landfill Disposal OR Recycled back into Alter NRG s Gasifier 10

11 CASE STUDY: LARGE SCALE MSW COST AND REVENUE COMPARISON

12 TYPICAL PROJECT COSTS Project Costs ($USD) Duration G-65 (1000 tpd) Front-End Engineering 4-6 Months $ 2 Detailed Engineering 2-4 Months $ 5 Equipment and Construction Months $ 220 Commissioning 1-2 Months $ 18 Total Estimated Cost $

13 TYPICAL CAPITAL COST & REVENUES: G-65 GASIFICATION FACILITY (ALL COSTS STATED IN $MILLION USD) Project Costs North America Europe Asia Equipment and Materials $ 105 $ 110 $ 80 Installation Cost $ 75 $ 80 $ 35 Owner Costs and Contingency $ 55 $ 60 $ 35 Total Project Capital Cost $ 235 $ 250 $ 150 Typical Annual Revenues $ 50 $ 75 $ 30 Annual Variable Costs $ 10 $ 10 $ 8 Annual Fixed Costs $ 10 $ 12 $ 9 Net Power Generation 25 MW 30 MW 15-20MW Assumptions: 1000 tpd; MSW to Power Steam Cycle; Equity financing of 100%; 25 year project life 13

14 SMALLER SCALE APPLICATIONS HAZARDOUS AND INDUSTRIAL WASTE SOLUTIONS

15 Commercial operations: In India (since 2008). In China (since 2013). TURNKEY HAZARDOUS WASTE SOLUTION Flexible operations: Processed over 600+ hazardous waste streams since Syngas can be utilized for steam, power or process fuel. Turnkey modular facility: Can be co-located with industrial facility Compact facility footprint: ~2,000 m 2 Reduces project time lines Approximately $25-35m USD solution depending on location Turnkey Modular Concept Environmentally sustainable: Slag has commercial uses (construction aggregate, rock wool insulation, etc.) WPC s high temperature gasification process does not create furans or dioxins. 15

16 THE WRAP UP Alter NRG provides a turnkey waste-to-energy solution Alter NRG will finance, build, own and operate the complete facility though Sunshine Kaidi (principal owner) Provide investment opportunities for project/ equity partners if needed o Provide total project guarantees and warranties for the entire facility through its EPC and strategic partners o Is modular, cost effective that reduces project time lines and increases economic returns Can handle multiple waste streams, where inorganic materials are transformed to an inert non-leaching vitrified slag product that can be sold for beneficial use The high temperature process does not create furans or dioxins and is environmentally superior 16

17 460, Avenue S.W. Calgary, Alberta Canada T2R 1R9 THANK YOU

18 SUPPLEMENTAL SLIDES

19 SUNSHINE KAIDI PROJECTS Biomass Power Plants Hydro Power Plants Wind Power Plants Fujian, China 12 MW Yunnan, China 315 MW Pinglu, China 49 MW Anhui (Ningguo), China 12 MW Nanbuhe, China 5 MW Sunshine Kaidi has signed twelve investment agreements for wind power projects throughout China. These projects include operating facilities in in Pinglu, Fuxin and Yanchi, all of which have 49 MW (each) of installed power capacity. Currently, Sunshine Kaidi has eight wind power projects under construction. Anhui (Wangjiang), China 30 MW Bajiu, China 22 MW Hubei, China - 30MW In 2008, Sunshine Kaidi received approvals for biomass power projects in 266 municipalities and counties in China, where the feedstock will be agricultural and forest waste. Currently, Sunshine Kaidi has 37 projects in commercial operation and 34 projects under construction. Sunshine Kaidi has 16 more hydropower projects proposed within Yunnan Providence, China along the Jingping River Valley, Chitong River Valley and Sanjia River Valley. 19

20 Power Plant Installations SUNSHINE KAIDI PROJECTS Mao Khe, Viet Nam 2 plants of 200 MW each Provided turnkey EPC services Construction period of 42 months; completed 3.5 months ahead Unit 1: operating since 2012; Unit 2 - operating since 2013 Henan, China 2 plants of 155 MW each Provided turnkey EPC services Unit 1: operating since 2008; Unit 2: operating since 2009 Quảng Ninh, Viet Nam 2 plants of 300 MW each Provided turnkey EPC services Obtained buyer s credit and a commercial loan Construction completed on time/budget within the 45 months period Henan, China 2 plants of 135 MW each Provided turnkey EPC services Unit 1: operating since 2005; Unit 2: operation since 2007 Hai Duong, Viet Nam 2 plants of 600 MW plant each Provided full turnkey EPC services Obtained buyer s credit and a commercial Construction completed on time/budget within the 48 months period Shanxi, China 2 co-generation plants of 200 MW each Unit 1: operating since 2008; Unit 2: operating since 2008 By the end of 2014, Sunshine Kaidi had successfully implemented more than 200 turnkey power projects as an EPC contractor both domestically and internationally. 20

21 TEES VALLEY, UK: ADVANCED GASIFICATION ENERGY- FROM-WASTE PLANTS TV1 TV2 Overview: 2,000 tpd of Municipal Solid Waste 100MW (gross) electrical base load production via combined cycle World s first combined cycle Energy from Waste facility Update on both phases: TV1 (1,000 tpd) completed construction and commissioning; in startup and will be fully operational in 2016 TV2 (1,000 tpd) currently under construction; commissioning late 2016 TV1 TV2 WPC Gasifier and Auxiliary Modules installed at TV1 21

22 TEES VALLEY, UK: TV Feedstock Reception Coke & Flux Silos Feedstock Conveyors WPC Gasifier & Auxiliary Modules Syngas Cleanup Train Syngas cleaned and compressed to FT specification Administrative & Control Rooms Gas Turbines 22 22

23 THE OPERATION OF THE TEES VALLEY PROJECT DEMONSTRATES: 1. Industrial / Commercial scale volumes of syngas from waste: 2,000 tpd of feedstock will produce ~7 Million MMBtu/year of syngas 100 MW (gross) electrical, base load production of energy Equivalent production of 1,600 2,000 Bbls/day of liquid fuels 2. The ability to consistently produce syngas at the required specification: To ensure reliability, the syngas must consistently meet the fuel specification of the gas turbine Gas turbine syngas specification is similar to liquids conversion technology syngas specification 3. The ability to create negative to low cost syngas from feedstock's Tipping fee revenues reduce the operating cost of making clean syngas 23

24 KEMI, FINLAND: BIOMASS TO BIOFUELS FACILITY Overview: The facility will produce 200,000 metric tons/year of biofuels from waste biomass; 75% biodiesel and 25% bio-gasoline Established permitting, engineering and design; construction will start in 2017 and planned commercial operations in 2019 Will utilize Alter NRG s plasma gasification system and Rentech s Fischer-Tropsch (FT) liquids processes (both owned by Kaidi) Waste Biomass from sustainable sources Benefits: An investment of EUR 1 billion, with a tax revenue of over EUR 200 million Will create 4,000 man-years of construction work; over 150 permanent positions once operational Be part of the EU's Renewable Energy Directive - 20% of energy consumption from renewable sources by 2020 Be part of Finland s goal to reach a target of 40% biofuels usage by

25 SHANGHAI, CHINA: HAZARDOUS WASTE FACILITY Overview: 30 tpd of medical waste and incinerator ash. Co-located with Shanghai Chengtou hazardous waste facility. Facility was commissioned in Q1, 2014 WPC offers this plant globally as a turnkey solution. Successfully completed 150+ day continuous operation. Benefits: Vitrifies hazardous incinerator ash. Inorganic materials are transformed into nonleaching marketable slag. Creates steam that is utilized in a steam turbine. 25

26 WUHAN, CHINA: WASTE-TO-BIOFUELS FACILITY Overview: 150 tpd of mixed wood biomass. Creates diesel and naptha using catalytic Fischer-Tropsch (FT) process. Facility was commissioned in Q Successfully completed 2+ years in operation. Update: Development of (3) 2000 tpd commercial facility in progress. Wuhan Kaidi uses both proprietary cobalt and Rentech s iron slurry FT technology

27 PUNE, INDIA: COMMERCIAL HAZARDOUS WASTE FACILITY Overview: Designed to process 72 tpd of hazardous waste Routinely processes different waste streams on weekly basis. Over 600 different waste streams processed since plant start-up Syngas is used to create electricity which is exported to the grid. Facility was commissioned in Successfully completed 7+ years in operation. 27

28 MIHAMA-MIKATA, JAPAN: ENERGY FROM WASTE Hitachi Metals 2 nd project with Westinghouse Plasma Corp. Serves the two cities of Mihama and Mikata, Japan WPC Plasma gasification of 20 tpd of MSW and 4 tpd of waste water sludge. Oldest operating facility; Commissioned in Syngas is combusted; resulting heat is used to dry sewage sludge prior to gasification. Successfully completed 13+ years in operation. 28